Powell Cites ‘Significant Downside Risks’ To Jobs; Puts Less Emphasis On Inflation
– Can’t Ease Too Quickly, But Easing Too Slowly Would Mean ‘Painful” Job Losses By Steven K. Beckner (MaceNews) – Federal Reserve Chairman Jerome Powell avoided giving an overt signal about what the Fed will do with interest rates later this month, but clearly leaned toward greater concern about a softening labor market than about […]
BofA Global Research: Managers Dumped Bonds in October Despite Expectations of Rate Cuts
By Vicki Schmelzer NEW YORK (MaceNews) – Global investors dumped bonds in October, despite expectations of future Fed cuts and continued concern about rising inflation, according to Bank of America Global Research’s monthly fund manager survey, released Tuesday. In October, a net 24% of portfolio managers were underweight bonds, versus a net 3% underweight in […]
‘It’s Not a Good Trajectory’ ISM’s Chief Says of Services Economy as Tariffs on Goods Spills Over
WASHINGTON (MaceNews) – The September Institute of Supply Management report on the momentum of the services economy – showing some slippage in the index to 50 – is part of a slowdown three years in the making, now burdened with spillovers from goods tariffs, the purchasing managers survey chief said Friday. The latest reading of […]
US Sept Manufacturing ISM Weaker Overall as Tariff and Pricing Uncertainty Combines with Supply Chain Disruptions, Fewer Foreign Customers
WASHINGTON (MaceNews) – The Institute of Supply Management September reading of U.S. manufacturing showed overall momentum slowing though the index improved slightly to a still contractionary 49.1 and the report’s organizer warned that the weakening could be a leading indicator. “The panelists are clearly saying that their customers are just not ordering,” said Susan Spence […]
NY Fed’s Williams: FOMC Has ‘Balancing Act’ Between Inflation, Employment
– Monetary Policy Still Restrictive; To Make Meeting-by-Meeting Judgment on Risks – Employment Risks Up; Inflation Pressure Lessening; Tariffs Not As Bad As Feared – Other Fed Officials More Hesitant To Cut Funds Rate Furthermore By Steven K. Beckner (MaceNews) – After cutting interest rates mid-month to guard against “undue” weakness in the labor market […]
TRANSCRIPT: Fed’s Powell Says Quarter-Point Cut ‘Risk Management’ Rather Than Reaction to Actual Jobs Deterioriation
WASHINGTON (MaceNews) – The following is a transcript of Federal Reserve Chair Jerome Powell’s post-FOMC news conference Wednesday: Recent indicators suggest that growth of economic activity has moderated. GEP rose at a pace of around one and a half percent in the first half of the year, down from 2.5 percent last year. The moderation […]
FOMC POLICY STATEMENT – As expected, with quarter-point rate cut followed by dot-plot expectations for two more this year
WASHINGTON (MaceNews) – The Federal Open Market Committee’s Wednesday policy statement: Recent indicators suggest that growth of economic activity moderated in the first half of the year. Job gains have slowed, and the unemployment rate has edged up but remains low. Inflation has moved up and remains somewhat elevated. The Committee seeks to achieve maximum […]
US TARIFFS STATE OF PLAY – Punishing 50% Tariff on India Products Takes Effect; Online Shoppers to be Hit With Tariffs Friday
WASHINGTON (MaceNews) – There was no last-minute reprieve for India, as of midnight ET hit with one of the highest tariff rates in the world. The implementation of a 50% rate shuts off most trade with the U.S. and there have been many accounts of sectors of the Indian economy already feeling the severe effect. […]
Japan Still Sees Gradual Economic Recovery but Warns Some Uncertainty over Trade Deals lingers, Downgrading Its View on Exporter Profits
By Max Sato (MaceNews) – Japan’s government continues to believe that the domestic economy is expected stay on a “modest recovery” track after top negotiators from Tokyo and Washington have worked out some details of their bilateral trade deal reached last month but also warned that uncertainty over global growth is here to stay for […]
Fed Officials Still Divided, Unsure About When and How Much To Cut Interest Rates
By Steven K. Beckner (MaceNews) – Federal Reserve officials have continued this week to muse about cutting interest rates for the first time since December when the Fed’s rate-setting Federal Open Market Committee meets in mid- September, but the FOMC remains divided and unsure. Despite an uptick in inflation, labor market worries have come to […]